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Sep 06, 2011, 06.42 PM IST
In an interview to CNBC-TV18, Walchandnagar Industries' managing director Chirag Doshi spoke about the recent happenings in the company and what the company plans to do going forward.
Below is the edited transcript of his interview. Also watch the accompanying video.
Q: What's the outlook with respect to new orders from the cement and power space? The fundamental outlook for both these sectors appears a tad bit clouded. Do you foresee any sluggish demand from these spaces?
A: The rise in interest rates has played a big role in a potential upcoming slowdown, especially in the two sectors – cement and power – which is a large business area for us. The order booking will be difficult and the margins will be squeezed.
We are comfortable today because we have a large order book of about Rs 2000 crore of which 60% is in the power and cement space. Our focus will be to execute orders over the next 12-18 months. Hopefully then, the market would pickup for our next stage of order booking.
Q: Could you give more details with regards to execution in FY12? You have an order book of around Rs 2000 crore. How much do you expect to execute in the financial year – September or October? How much do you expect in terms of inflows for this year?
A: Out of the Rs 2000-crore order book, about Rs 300-400 crore of long gestation orders in the nuclear and defence space will take three-four years. We aim to execute as much as Rs 1200 crore over the next 12-14 months.
Q: How much of your current order book comes in from cement and power space?
A: The existing order book of Rs 2000 crore will be about Rs 1000-1100 crore from power, sugar and cement space and about Rs 400 crore would be from defence and nuclear space. The rest is made up through material handling and gear boxes.
Q: Last time, you were in talks with a Russian company for a JV or tie-up. Have you concluded anything?
A: The talks have been quite well. We had another round of meetings in August. Things are progressing very well. In the next couple of months, we will move to a much more concrete decision on how the two companies would work together including our capex plans for the new age facility to build the next generation of nuclear equipment for our country’s expansion. We may have a lot of information to discuss in another two-three months.
Tags: Walchandnagar Industries, Chirag Doshi, power and cement space, defence and nuclear space, sugar
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